Reports: Sears Holdings may be open to selling Canadian flagship store

Canadian newspaper reports that Toronto Eaton Centre location is 'coveted' by Nordstrom

NEW YORK — Sears Holdings' Canadian division may consider selling off its Toronto flagship store if the right buyer comes along, according to published reports.

In the latest sign of trouble for the retailer, Sears Canada CEO Douglas Campbell told the Globe and Mail, one of Canada's largest newspapers, that the company was considering closing more stores, including the one at the Toronto Eaton Centre. Sears Canada's head office also is located at Eaton Centre. The newspaper reported that Campbell's predecessor, Calvin McDonald, was reluctant to sell the location because of its symbolic importance, but that Seattle-based Nordstrom was interested in buying the location as it prepares to open its first Canadian store next year.

Sears Holdings, based in Chicago, reported a $194 million loss in its second-quarter 2013 earnings, announced in August, compared with a $132 million loss in second quarter 2012. The Canadian division has been especially hard-hit: While same-store sales at Sears' U.S. stores declined by 0.8%, Sears Canada experienced a 2.5% decline in comps; Kmart's comps declined by 2.1%. Nevertheless, online business at Sears.com and Kmart.com increased by 20%, the company said.

 

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